GSA Awards $17.5M Sole Source IDIQ to L3 Technologies for Link 16 Systems
Contract Overview
Contract Amount: $17,487,777 ($17.5M)
Contractor: L3 Technologies, Inc.
Awarding Agency: General Services Administration
Start Date: 2024-01-18
End Date: 2026-07-22
Contract Duration: 916 days
Daily Burn Rate: $19.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: L3 SOLE SOURCE IDIQ TO26 NSWC CRANE LINK 16
Place of Performance
Location: MITCHELL, LAWRENCE County, INDIANA, 47446
State: Indiana Government Spending
Plain-Language Summary
General Services Administration obligated $17.5 million to L3 TECHNOLOGIES, INC. for work described as: L3 SOLE SOURCE IDIQ TO26 NSWC CRANE LINK 16 Key points: 1. Contract awarded to L3 Technologies, Inc. for Link 16 systems. 2. Sole source award indicates limited competition, potentially impacting price discovery. 3. The contract has a duration of 916 days, ending in July 2026. 4. NAICS code 334220 covers Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing. 5. The award is a Delivery Order under an existing IDIQ contract.
Value Assessment
Rating: fair
The contract value is $17.5M. Without competitive bids or a benchmark for similar Link 16 systems, assessing value is difficult. The sole source nature raises concerns about whether this price represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning it was not competed. This limits price discovery and may lead to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The sole-source award potentially results in higher costs for taxpayers due to the lack of competitive pressure.
Public Impact
Ensures continued availability of critical Link 16 communication systems for defense applications. Potential for increased costs due to sole-source award impacts taxpayer funds. Supports a single contractor, L3 Technologies, Inc., for this specific requirement. The contract duration extends into mid-2026, indicating a long-term need.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole source award limits competition
- Potential for overpayment without competitive benchmarking
- Lack of transparency in price negotiation
Positive Signals
- Ensures critical system availability
- Supports existing IDIQ contract vehicle
Sector Analysis
This contract falls within the defense communications equipment sector. Spending in this area is often characterized by high technical requirements and specialized suppliers, sometimes leading to sole-source awards.
Small Business Impact
The contract was awarded to L3 Technologies, Inc., a large business. There is no indication of small business participation in this specific award, which could be an area for improvement.
Oversight & Accountability
The award is a Delivery Order under an existing IDIQ. Oversight should focus on ensuring the justification for the sole-source award remains valid and that pricing is reasonable.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Sole Source Award
- Potential for Price Inflation
- Limited Competition
- Lack of Small Business Participation
Tags
radio-and-television-broadcasting-and-wi, general-services-administration, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $17.5 million to L3 TECHNOLOGIES, INC.. L3 SOLE SOURCE IDIQ TO26 NSWC CRANE LINK 16
Who is the contractor on this award?
The obligated recipient is L3 TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $17.5 million.
What is the period of performance?
Start: 2024-01-18. End: 2026-07-22.
What is the justification for awarding this contract sole-source instead of competing it?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs where competition is not feasible or practical. A thorough review of the justification documentation is necessary to understand the specific rationale.
How does the lack of competition impact the overall cost-effectiveness of this contract?
The absence of competition inherently removes the price pressure that typically drives down costs in a competitive bidding process. Without competing offers, the government relies on the contractor's proposed price and its own negotiation skills. This can lead to higher prices than might be achieved through a competitive award, potentially resulting in less value for taxpayer money.
What are the risks associated with relying on a single supplier for critical communication systems like Link 16?
Relying on a single supplier for critical systems like Link 16 introduces several risks. These include potential supply chain disruptions if the sole provider faces issues, a lack of innovation due to no competitive pressure, and vulnerability to price increases. It also limits the government's options if performance issues arise with the current contractor.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 47QFLA24Q0025
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 640 N 2200 W, SALT LAKE CITY, UT, 84116
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,487,777
Exercised Options: $17,487,777
Current Obligation: $17,487,777
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $2,393,231
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 47QFLA20D0014
IDV Type: IDC
Timeline
Start Date: 2024-01-18
Current End Date: 2026-07-22
Potential End Date: 2026-11-15 00:00:00
Last Modified: 2026-03-12
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